A credit package worth some 20 trillion VND (952.3 million USD) will be released to support homebuyers interested in commercial and urban housing projects, reported Xay Dung, the Ministry of Construction's e-paper.

The ministry made the announcement in a document sent to the government office, whereby it approved the lending programme suggested by the State Bank of Vietnam.

The central bank will disburse the fund through commercial banks in which it has controlling stakes. They include Vietcombank, VietinBank and BIDV, along with Agribank and Vietnam Development Bank.

Deputy Minister of Construction Pham Hong Ha said the programme is aimed at boosting the real estate market while helping lending institutions speed up bad debt settlement.

Savills Vietnam's managing director Neal Macgregor recently told the press in Ho Chi Minh City that Vietnam's social and economic factors are supporting the growth of its real estate market, which has bottomed out.

He emphasised that the amended Law on Housing, effective from July 1, 2015, which will enable overseas Vietnamese and foreigners to own houses in the country, is expected to attract a new wave of investment.

Vietnam is among the top foreign remittance recipients globally, with last year's remittance reaching 12.5 billion USD, and the inward flow of capital has recently accelerated, noticeably from Singapore, the Republic of Korea, and Japan.

The country's urbanisation rate, from less than 20 percent in 1995 to 34 percent last year, and its rapidly growing middle class — expected to reach 33 million by 2020 from 12 million in 2012 — are positive factors for the property market.

VNA